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Category: Metal, Utilities, Theft, April 2, 2008 - The Senate Minotiry Leader Dick Ackerman Online News Service -
This briefing report is intended to provide a look at the factors contributing to the increase in metal theft, and the steps that are being taken throughout the state to prevent copper from becoming “gold” to metal thieves. Price of Copper Makes Crime Enticing Though the downturn in the U.S. housing market has dimmed the domestic demand for copper wiring, pipe, and appliances, continuing demand from China's expanding economy has kept prices for many scrap metals high. Historic high prices for copper and aluminum have resulted in increasing numbers of theft of those metals. The market price for copper has gone from 75 cents a pound to $3.76 in five years. Aluminum has more than doubled in the same time, from 60 cents to $1.30 a pound. While demand in China remains the “single driving force” behind the high prices , according to the Institute of Scrap Recycling Industries, only 20 percent of the scrap metal collected in the U.S. leaves the country. As the prices paid for metals like copper have increased, so have the incentives for theft. From 2004 to 2005, metal theft increased 100 percent. From 2005 to 2006, it increased an additional 400 percent. Metal theft has become the hottest and fastest growing segment of crime impacting agriculture. Every farmer has been a victim of metal theft or knows someone who has. Farmers and ranchers are at a greater disadvantage because they operate in rural areas and cannot always adequately protect their property. The cost is not merely the naked value of the metal; the true loss is multiplied many times when replacement costs, loss of production, and damage to crops are counted. According to the California Agricultural Commissioners and Sealers Association, rural crime costs the agricultural industry tens of millions of dollars annually in damage to electrical systems, irrigation systems, lost fuel, and agricultural commodities. Detectives in some counties are receiving as many as nine reports of metal theft per day. The theft of copper isn’t only affecting the farming community. The theft of utility copper is a significant issue for utility companies like AT&T. Utility copper thefts often disrupt service to customers, resulting in unknown personal and business losses for them, as well as cost utility companies directly for the expense of material loss, replacement, and repairs. AT&T states that in 2006, there were 223 reported thefts of AT&T copper telephone cable in California, 122 of which impacted service to customers. The value of this stolen copper alone is over $700,000. To Pre-empt, or Not To Pre-empt, That is The Question To what extent should a statewide law pre-empt local ordinances when it comes addressing the issue of metal theft? That was the question asked when Assembly Bill 844 by Assemblyman Berryhill was heard by the Senate Business, Professions & Economic Development Committee in 2007. AB 844 would haveenacted new restrictions on the purchase of copper, aluminum, stainless steel, brass, and bronze by junk dealers and recyclers in response to the rise in metal theft. In addition, it also would have allowed local governments to enact restrictions that were tougher than those put in place by the bill, as long as those restrictions were consistent with the requirements of AB 844. This bill failed to pass out of the B&P Committee by a vote of 3-3. The California Chapter of the Institute of Scrap Recycling Industries, who supports a single statewide standard, believes that “the fundamental purpose for addressing the problem on an exclusive statewide basis is to create a unified statewide program that puts all recyclers and all local governments on an even playing field.” Supporters point to the fact that recyclers often operate facilities in different counties throughout the state. Without a unified statewide standard, these business owners would be forced to comply with recycling standards that could vary from county to county, potentially creating a harmful, competitive imbalance in both the intrastate and interstate commodities markets as they relate to scrap metals. Others, however, don’t believe that a unified standard is the way to go. While they agree a minimum statewide standard needs to be in place, they want local governments to have the ability to enact ordinances that are stricter than the statewide standard. Metal theft manifests itself differently in different communities. In the Central Valley, agricultural equipment is one of the most commonly stolen items. In the Bay Area, utility wire and metal in schools and subdivisions is more of a problem. Opponents of pre-emption argue that a one-size-fits-all approach to the problem won’t work. Current Restrictions By law, recyclers must keep on file a seller’s California identification card number, address, and the vehicle license number of anyone selling scrap metal. The seller also has to declare where the metal came from. These records must be kept for two years. Some local governments have already enacted additional restrictions to fight metal theft in their area. In Fresno County, recyclers are required to get a thumbprint of the seller on every receipt along with other identification and send their invoices weekly to the Sheriff's Department. Additionally, in Fresno County junk dealers can only make payment for scrap metal (excluding used beverage containers) by a check sent by U.S. mail to a physical address provided on the seller’s driver’s license or other identification recorded in the transaction record, no sooner than three days after the transaction. The Fresno District Attorney's Office believes the payment delay will give them more time to track down potential thieves. In Stanislaus County, junkdealers and recyclers can only be open from 7 a.m. to 7 p.m., and payments in excess of $10 must be made by check. Additionally, junkdealers and recyclers are required to report daily to the sheriff’s office regarding the previous day’s transactions, which must include the seller’s name, driver’s license number, address, fingerprint, and a description of the metals sold. San Francisco also requires junk dealers and recyclers to place a hold on metals received, and has identification requirements in place that are similar to those that were proposed by AB 844. There are also related ordinances in Tulare County, Kern County, Madera County, and Kings County. What to Expect This Year In addition to AB 844, two other bills are attempting to address the issue of metal theft this year. Senate Bill 447 by Senator Maldonado requires junk dealers and recyclers to report specified information to the chief of police of the city or sheriff of the county in which the junk dealer or recycler sold or purchased the junk. This measure recently passed the Senate by a 30-7 vote and is sitting idle on the Assembly floor. SB 691 by Senator Calderon requires junk dealers and recyclers to comply with additional recordkeeping requirements and new payment restrictions when purchasing scrap metal. It also prohibits local governments from enacting their own restrictions to address metal theft. SB 691 is currently on the Assembly Inactive file. Conclusion Metals theft has become an overwhelming problem across California. While farms, construction sites, and utilities are frequently targets of thieves, no one is immune to this problem. In the coming months, the Legislature, law enforcement, and the industries impacted by metal theft need to come together to ultimately create a solution to address this problem. California needs to send a clear message that the purchase, processing, or sale of stolen materials will not be tolerated. |
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